Key Developments For California Coastal Communities, Inc.
California Coastal Communities, Inc. (CALC.O) (Consolidated Issue listed on NASDAQ Global Market)
California Coastal Communities Announces Voluntary Filing For Plan of Reorganization To Extend Maturity Dates of Brightwater Credit Facilities
California Coastal Communities announced that the Company and certain of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to extend the maturity dates of approximately $182 million of indebtedness related to the Company's Brightwater development project and to modify and eliminate certain debt covenants. The petitions were filed on October 27, 2009 in the U.S. Bankruptcy Court in the Central District of California.
California Coastal Communities Completes Sale Of 17 Brightwater Model Homes For $25 Million
California Coastal Communities announced that on December 31, 2008, it completed the sale of 17 model homes at its Brightwater community in Huntington Beach, California to an investor for $25 million. The Company also entered into an agreement with the investor to lease back the models for continued customer display during the next three years with two renewal options for one year each. The Company received $22.5 million in cash with an additional $2.0 million deferred payment due in two years upon the satisfaction of certain conditions, and $500,000 of the sales price was set aside as a reserve payable for conversion of the models for sale to homebuyers upon termination of the lease.
California Coastal Communities Appoints New Chairman-Form 8-K
California Coastal Communities announced that in its Form 8-K that on October 16, 2008, Thomas W. Sabin, Jr., the Company’s Chairman of the Board resigned from that post and as a Director of the Registrant. Phillip R. Burnaman II, an existing Director of the Registrant and the Chairman of its Audit Committee, has been appointed to succeed Mr. Sabin as Chairman of the Board.
California Coastal Communities Announces Completion Of Amendments To $210 Million Credit Facilities
California Coastal Communities announced that it has completed amendments to its $210 million of credit facilities with two bank syndicates managed by KeyBank. The amendments defer $25 million of debt payments which were due at the end of 2008 until future periods and preserve an additional $75 million of borrowing capacity between now and September 2009 by deferring loan amortization and commitment reductions. As a result, only $1.0 million of mandatory principal payments will be due by year-end, which the Company expects to satisfy with proceeds from pending home sale escrows. This allows the Company greater flexibility to repay the debt and finance construction based on a schedule that reflects current projections for home sales at Brightwater. The amendments to the revolving credit agreement also provide the Company with an option to extend the maturity date from September 15, 2009 to June 30, 2010, provided that the Company is in compliance with its financial covenants for the year ending December 31, 2008.
California Coastal Communities Announces Favorable Ruling in Litigation Over Water at Brightwater Project
California Coastal Communities announced that that Orange County Superior Court issued a final ruling denying Golden State Water Company's motion for a preliminary injunction to require the Company's Brightwater residential development on the Bolsa Chica mesa to disconnect its connection to the City of Huntington Beach's water service and use Golden State's water in its place. The Court indicated that an injunction was not appropriate because monetary damages would be an adequate remedy if the plaintiff prevails on the merits of their case at trial. No trial date has been set at this time, and the Company and its counsel believe that there are strong arguments against Golden State's position.
